Former Agent Takes On NFL, NFLPA In Federal Court

The NFL has been included as a defendant in a case that revolves around the legality of a rule created and enforced by the players' association. (Photo by Tim Bradbury/Getty Images)

Former
NFL agent and lawyer James Dickey does not think that it is legal for there to be a rule that requires agents to negotiate at least one NFL team deal for every three year period in order to stay certified to represent NFL players. In fact, last week Dickey filed a federal complaint against the NFL, NFL Management Council and NFL Players Association for damages and equitable relief, hoping for a ruling that will strike down what he refers to as an artificial barrier.

The actual rule is enforced by the NFL Players Association, and it states that "if you do not negotiate a single NFL Player Contract (excluding practice squad) within a three-year period, your certification will automatically expire. You may only regain certification by submitting a new application, attending the New Agent seminar, and passing the exam."

Dickey, who was first certified roughly a decade ago, claims that the rule is unreasonable and that the defendants are breaching contracts without a proper review process "contrary to the good laws for free and fair competition in the economic [market] system of professional football." His complaint alleges that acting in such a way is a violation of the collective bargaining agreement between the players and teams and that antitrust laws are being violated by way of a limitation of fair and equitable opportunities for competition between agents. Wrongful collusion is also mentioned as a cause of action.

Dickey's main gripe is that the NFL and NFLPA have purportedly created artificial barriers to hamper and inhibit minority agents from competing fairly in the industry.

The collective bargaining agreement provides the NFL Players Association with exclusive authority to determine the number of agents to be certified as well as the ability to withdraw or deny an agent's certification so long as the determination is reasonable and not discriminatory.

In early 2002, the NFL Players Association Board of Player Representatives amended the Regulations Governing Contract Advisors to provide for the revocation of an NFL agent's certification upon failure to negotiate an NFL player contract with an NFL team within a three year period. On many occasions since then, an arbitrator overseeing appeals of NFL agents who lost certification under the rule deemed the rule to be reasonable on its face.

For instance, in the arbitration between the NFL Players Association and agent Lee Clayton, the arbitrator found the rule to be reasonable, justifying it by finding that an NFL agent who was inactive would likely be operating at a disadvantage when negotiating with an employee of an NFL team who negotiated on a full-time basis. As was the case with roughly ten other NFL agents who have appealed the withdrawal of certification under the rule, Clayton's appeal was denied.

The defendants in the lawsuit have yet to respond to the complaint filed by Dickey, but the expectation is that the NFL and the NFL Management Council will seek to be dismissed based on failure to state a claim, as neither party was involved in the creation of the rule at issue nor its enforcement. The NFL Players Association is expected to also seek a dismissal of the case based on improper venue, as the appeals process under the Regulations Governing Contract Advisors controls, which includes precedent interpreting the validity of the rule, which should be binding on Dickey, who previously accepted that those terms govern his certification and standing as an NFL agent.

Dickey is representing himself in his complaint against the NFL, NFL Management Council and NFL Players Association, which was filed in the District of Massachusetts, which is where Dickey primarily operates as a sports agent.

Darren Heitner is the Founder of HEITNER LEGAL and Founder/Chief Editor of Sports Agent Blog, a leading niche industry publication. He focuses on sports, entertainment, and intellectual property litigation and transactional work, and is the author of 2 editions of How to Pla...